Monday
October 25, 6:16 pm ET

NEW YORK, Oct. 25 /PRNewswire-FirstCall/ -- DAG Media,
Inc. (Nasdaq: DAGM - News), a leading independent publisher of print and
online ethnic business directories, announced today that net advertising
revenue for the quarter ended September 30, 2004 was $1,987,000 versus
advertising revenue of $2,043,000 for the same period last year, a decrease
of $56,000 or 2.74%. The slight decrease was primarily attributable to
the decrease in recognized revenue related to the Jewish Israeli Yellow
Pages Directory.
Net income was $1.189 million or $0.38 per basic share (based on 3.152
million shares) and $0.37 per diluted share (based on 3.238 million shares)
compared with net income of $1.138 million and $0.39 per basic share (based
on 2.929 million shares) and $0.38 per diluted share (based on 3.011 million
shares). The increase was primarily due to the sale of Blackbook Photography
Inc., which is reflected on the Discontinued operations section. On August
24, 2004, the company sold its wholly owned subsidiary, Blackbook Photography
Inc., for $2.25 million. The Company's net profit from the sale after
direct related costs, net of tax effect, totaled $1.169 million.

Net advertising revenue for the nine months ended September
30, 2004 was $5,027,000 compared with $5,580,000 for the same period last
year. Net income for the period was $1,138,000 or $0.36 per basic share
(based on 3.125 million shares) and $0.35 per diluted share (based on
3.230 million shares), compared with a net income of $1.151 million or
$0.39 per basic share (based on 2.928 million shares and $0.37 per diluted
share (based on 3.102 million shares), in the prior period. The decrease
in net revenues was primarily attributable to the reduction of recognized
revenues related to the New Yellow Manhattan Directory ninth edition (sold)
partly offset by the increased recognized revenues of the tenth edition
of the Jewish Master Guide Directory. The increased net income results
primarily due to the sale of Blackbook Photography Inc., which is reflected
on the Discontinued operation section.

The Company also reported increased cash, cash equivalents,
other marketable securities and short term investments of $1,274,000 to
$9,982,000 or $3.17 per share versus the same period last year. As of
September 30, 2004 the Company also reported current assets of $13,189,000,
total assets of $13,800,000, total shareholders' equity of $9,465,000
and deferred revenues of $2,794,000.

Due to the increases of both income and cash related to
the sale of Blackbook Photography Inc., the Board of directors declared
a $0.28 per share cash dividend to all shareholders of record on December
1st, 2004 to be paid on January 5, 2005.

Assaf Ran, Chairman of the board and CEO stated, "Our
third quarter revenue reflects as expected the maturity and stability
of the Jewish Israeli Yellow Pages directory. Growth should be anticipated
in our other directory, The Jewish Master Guide (recognized in the fourth
quarter)."

"I'm pleased with the board decision to distribute
a dividend for the second year in a row which was enabled thanks to the
Blackbook deal," added Mr. Ran.

Forward-looking statements in this release are made pursuant
to the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that such forward-looking
statements involve risks and uncertainties, including, without limitation,
continued acceptance of the Company's products, increased levels of competition,
new products introduced by competitors, changes in the rates of subscriber
acquisition and retention, and other risks detailed from time to time
in the Company's periodic reports filed with the Securities and Exchange
Commission.

Other income 84,735 95,546 328,520 200,747
Gain from sale of the New
Yellow Directory --- 1,207,997 --- 1,207,997
Total other income 84,735 1,303,543 328,520 1,408,744
Income from continuing
operations before
provision for income taxes 137,737 1,467,979 286,509 1,788,158